Things You Should Know About Insurance for Moving

Things You Should Know About Insurance for Moving

Most moving companies will carry their own moving insurance. However, it is often woefully insufficient. They carry limited liability, but it’s not enough to replace or repair much. You can purchase Full Value Replacement Protection from the mover, though, to cover your property with replacement value. Before you look into a third party insurance, check your own homeowner’s insurance policy, because it may already cover your belongings during the move.

The insurance offered by movers and packers is governed by Federal rules, while your insurance company will have to operate under state guidelines. So, before you hire movers, assess your personal need for insurance, and compare it to what you already have in place. Then, you’re all set to see what else is available.

Limited liability insurance is also known as “basic carrier liability-release”. It’s not worth much, and you pay per pound of household belongings. The usual rate is between .25 and .60 cents for each pound. You’ll find that long distance movers, piano movers, and local movers will charge by the pound for insurance. A much better choice over limited liability is the full-value replacement insurance. It’s a comprehensive policy that covers your goods while the home movers have them in transit.

In addition, be sure that your most valuable belongings are on the moving company’s shipping document as “Extra Ordinary Value Items”. If not, they may not be covered.

The moving company itself may offer third party insurance, but this is really a last resort. You’re much better off shopping around with other carriers. Premiums will be about 1% of the replacement value of your shipment.

Finally, see if your homeowner’s insurance will cover your household belongings while they are in possession of the movers and packers. Check out the details very carefully, because you don’t want the fine print to trip you up. Find out if there are any disclaimers or exceptions over what is covered for what amount.

Some more details to verify are whether or not your belongings are covered for both intra- and inter-state moves. Find out, also if you have coverage for exceptional value items. Also, will your insurance only cover your things while in transit, or while the movers and packers are loading and unloading. If you’re moving yourself rather than hiring a moving company, will your items be insured? If you do your homework, and make sure everything is covered regardless of what happens, the peace of mind you experience will be well worth the caution.

If you do, unfortunately, have to file a claim, you’ll have a 9 month period to file a claim, if your move was interstate. An intra-state claim may carry a different claim period. Regardless of what the moving company says, you should investigate your own insurance and information for your own particular situation, in your state. You’ll need to follow the guidelines set by your insurance company, and if you’re not satisfied, contact the Better Business Bureau.


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